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 Q:  My wife and I are having our first child and the baby's due date is Nov. 26. I have insurance through my work right now, but the premiums I have to pay are horrible. For just my wife and me we pay $240 per month and when our child comes, it will jump up to $480 per month. I cannot afford that and so I will be looking for a new job that has better benefits. I do not want to drop my current insurance until after the baby is born and we know for sure that the baby is healthy. For this reason I would like to sign up for COBRA insurance until I can get a new job and qualify for insurance. My question to you is this. When should I apply for COBRA insurance? Should I do it now or wait until after the baby is born?

A:  Your employer is required by law to offer you the continuation of their group health policy for up to 18 months if there are more than 20 employees. You should let your employer know at the time you resign that you want to continue the insurance. They have up to 45 days after your last day of group benefits to mail you the election form. You have 60 days to elect COBRA, then your insurance will be retro-active to your last day of employment or last day of group benefits.  You will not have any lapse or gap in coverage. Since, you no longer work for that employer but still have their coverage; you will be responsible for 100% of the monthly premiums. Plus, the employer can add a 2% administrative fee to that cost.